Optimization Simulation, Using Steel Plant Off-Gas for Power Generation: A Life-Cycle Cost Analysis Approach

Abstract

This research aims to contribute to the international desires of greenhouse gas mitigation through a study on the optimization of 100 MW off-gas power plants' subcritical steam cycle, operating in conjunction with steel plants. The performance and fiscal efficiency of the off-gas power plants are based on data collected from Krakatau Steel plants in Indonesia, simulated and analyzed through thermodynamic simulation model (PEPSE). The three scenarios simulated for comparison are: (1) 100 MW off-gas power plant as-is operation, (2) 100 MW off-gas power plant optimized, and (3) 100 MW cogeneration off-gas power plant. The optimization of the off-gas power plant and use of steam extraction was found to have a 45 M and 26 M USD savings in comparison to the base power plant, assuming a 5.5% discount rate and 400 Million USD capital expenditure. The theoretical findings are of use to academia and industry in providing proof of potential cost-savings of integrating off-gas into existing power generation operations.